%----------------------------------------------
% Formatting and file path
%----------------------------------------------

clear;
clc;
format bank; % Set formatting to display numbers without e format

%----------------------------------------------
% Read in data
%----------------------------------------------

load('../../Data/structural/output/Structural_Results_at_ss_assets_minus_land_of_rich.mat')

%----------------------------------------------
% Simulate reducing psi_h
%----------------------------------------------

psi_h=0.5.*psi_h;


%----------------------------------------------
% Estimate h*, l*, h' at rich ss level of ALL ASSETS MINUS LAND
%----------------------------------------------

k=43701;
fk=a*(k^2) + b*k;

psi_l_sim = ratio_psi_l.*psi_l;
psi_h_sim = ratio_psi_l.*psi_h;

l_opt = zeros(N,1);
h_opt = zeros(N,1);
hiredin_opt = zeros(N,1);
profit_opt = zeros(N,1);

for i=1:N
    profit = @(x) -A(i)*fk*(x(1) + x(3))^beta - w_bl(i)*x(2) + phi*w_bl(i)*x(3) + 0.5*(sqrt(psi_l_sim(i))*x(1) + sqrt(psi_h_sim(i))*x(2))^2;
    [argmax, max] = fmincon(profit, [0,0,0], [1,1,0], R, [], [], [0,0,0], [R,H(i),Hire_in_max]);
    l_opt(i) = argmax(1);
    h_opt(i) = argmax(2);
    hiredin_opt(i) = argmax(3);
    profit_opt(i) = -max;
end

clear max argmax

% Check if it would be optimal to liquidate capital:

for i=1:N
    profitalt = @(x) -rho*k -w_bl(i)*x + 0.5*psi_h_sim(i)*x^2;
    [argmax, max] = fmincon(profitalt, 0, [], [], [], [], 0, H(i));
    if -max > profit_opt(i)
        l_opt(i) = 0;
        hiredin_opt(i) = 0;
        h_opt(i) = argmax;
        profit_opt(i) = -max;
    end
end

clear max argmax

% Trim :
l_opt(l_opt < 1) = 0;
h_opt(h_opt < 1) = 0;
hiredin_opt(hiredin_opt < 1) = 0;

% Optimal cases:
case_opt = zeros(N,1);

for i=1:N
    if l_opt(i) > 0 && h_opt(i) > 0 && hiredin_opt(i) > 0
        case_opt(i) = 1;
    elseif l_opt(i) > 0 && h_opt(i) > 0 && hiredin_opt(i) == 0
        case_opt(i) = 2;
    elseif l_opt(i) > 0 && h_opt(i) == 0 && hiredin_opt(i) > 0
        case_opt(i) = 3;
    elseif l_opt(i) > 0 && h_opt(i) == 0 && hiredin_opt(i) == 0
        case_opt(i) = 4;
    elseif l_opt(i) == 0 && h_opt(i) > 0 && hiredin_opt(i) > 0
        case_opt(i) = 5;
    elseif l_opt(i) == 0 && h_opt(i) > 0 && hiredin_opt(i) == 0
        case_opt(i) = 6;
    elseif l_opt(i) == 0 && h_opt(i) == 0
        case_opt(i) = 7;
    end
end

%----------------------------------------------
% Estimate h*, l*, h' at baseline capital level
%----------------------------------------------

l_opt_bl = zeros(N,1);
h_opt_bl = zeros(N,1);
hiredin_opt_bl = zeros(N,1);
profit_opt_bl = zeros(N,1);

for i=1:N
    profit = @(x) -A(i)*fk_bl(i)*(x(1) + x(3))^beta - w_bl(i)*x(2) + phi*w_bl(i)*x(3) + 0.5*(sqrt(psi_l(i))*x(1) + sqrt(psi_h(i))*x(2))^2;
    [argmax, max] = fmincon(profit, [0,0,0], [1,1,0], R, [], [], [0,0,0], [R,H(i),Hire_in_max]);
    l_opt_bl(i) = argmax(1);
    h_opt_bl(i) = argmax(2);
    hiredin_opt_bl(i) = argmax(3);
    profit_opt_bl(i) = -max;
end

clear max argmax

% Check if it would be optimal to liquidate capital:

for i=1:N
    profitalt = @(x) -rho*k_bl_pre_trans(i) -w_bl(i)*x + 0.5*psi_h(i)*x^2;
    [argmax, max] = fmincon(profitalt, 0, [], [], [], [], 0, H(i));
    if -max > profit_opt_bl(i)
        l_opt_bl(i) = 0;
        hiredin_opt_bl(i) = 0;
        h_opt_bl(i) = argmax;
        profit_opt_bl(i) = -max;
    end
end

clear max argmax

% Trim :
l_opt_bl(l_opt_bl < 1) = 0;
h_opt_bl(h_opt_bl < 1) = 0;
hiredin_opt_bl(hiredin_opt_bl < 1) = 0;

% Optimal cases:
case_opt_bl = zeros(N,1);

for i=1:N
    if l_opt_bl(i) > 0 && h_opt_bl(i) > 0 && hiredin_opt_bl(i) > 0
        case_opt_bl(i) = 1;
    elseif l_opt_bl(i) > 0 && h_opt_bl(i) > 0 && hiredin_opt_bl(i) == 0
        case_opt_bl(i) = 2;
    elseif l_opt_bl(i) > 0 && h_opt_bl(i) == 0 && hiredin_opt_bl(i) > 0
        case_opt_bl(i) = 3;
    elseif l_opt_bl(i) > 0 && h_opt_bl(i) == 0 && hiredin_opt_bl(i) == 0
        case_opt_bl(i) = 4;
    elseif l_opt_bl(i) == 0 && h_opt_bl(i) > 0 && hiredin_opt_bl(i) > 0
        case_opt_bl(i) = 5;
    elseif l_opt_bl(i) == 0 && h_opt_bl(i) > 0 && hiredin_opt_bl(i) == 0
        case_opt_bl(i) = 6;
    elseif l_opt_bl(i) == 0 && h_opt_bl(i) == 0
        case_opt_bl(i) = 7;
    end
end

%tabulate(case_opt_bl);

%----------------------------------------------
% Estimate value of misallocation
%----------------------------------------------

misallocation = zeros(N,1);

for i=1:N
    if case_opt(i) == 5 || case_opt(i) == 6   % Misallocation is zero if case 5 or 6 dominates at high SS
        misallocation(i) = 0;
    else
        misallocation(i) = profit_opt(i) - profit_opt_bl(i);
    end
end

misallocation(misallocation < 0) = 0;

misallocation_untopcoded=misallocation;
total_misallocation_untopcoded=sum(misallocation_untopcoded);

% Top-code top 5% outliers
misallocation_95_pcile = prctile(misallocation,95);
misallocation(misallocation>misallocation_95_pcile) = misallocation_95_pcile;
total_misallocation=sum(misallocation);


%----------------------------------------------
% Calculate cost for all HHs to reach unstable ss, i.e. overcome poverty trap (at baseline pre-transfer)
%----------------------------------------------

min_transfer = zeros(N,1);

for i=1:N
    if case_opt(i) == 5 || case_opt(i) == 6   % Optimal transfer is zero if case 5 or 6 dominates at high SS
        min_transfer(i) = 0;
    else
        min_transfer(i) = uns_threshold - k_bl_pre_trans(i);
    end
end

min_transfer(min_transfer < 0) = 0;

total_transfer=sum(min_transfer);

%----------------------------------------------
% Export results to Excel
%----------------------------------------------

tabulate(case_opt);

T=table(hhid,case_opt,misallocation);
T(1:2,:);

filename='../../Data/structural/intermediate/counterfactuals/optimal_case_by_hh3_psih_reduced_at_ss_assets_minus_land_of_rich.csv';
writetable(T,filename);

save('../../Data/structural/intermediate/counterfactuals/Simulate_reducing_psih_by_50pc_at_ss_assets_minus_land_of_rich')
